PLEASE RESPOND TO THIS POST WITH A SCHOLARLY RESPONSE. ONE REFERNCE IS NEEDED. S

Question

PLEASE RESPOND TO THIS POST WITH A SCHOLARLY RESPONSE. ONE REFERNCE IS NEEDED.

Speaking personally, I think the top three elements to consider when setting compensation are competitive pay rates, reasonably priced healthcare benefits, and flexible work conditions. Pay is a basic that is the foundation of why most people work. I don’t know of anyone who works for benefits without taking monetary compensation. Along with money, health benefits have been near the top of most people’s list of important benefits with the government becoming involved to ensure that everyone has obtained some form of healthcare. Flexible work schedules help the growing population of families that rely on dual-incomes to cover daycare costs. It also helps with scheduling family activities and time-saving adjustments to commuting time. This flexibility can improve productivity at work and loyalty to an organization (Paychex, 2016).

Explanation / Answer

The task of fixing or setting of a compensation is very cruicial and it depends majorly on the objectives of the busoness. The HR department is the one in most of the organisations which fixes the compensation rates of employees. While setting up the compensation rates the following elements are considered:

a. Budget - Every position in an organisation is allocated a budget and the employee for the position can be offered the amount within the budget. It is always advisory to look for candidates who suit within the budget of the role and simaltaneously are good enough for the role. The budget of a compensation package defines the fixed and variable ratios that are to be offered to the candidate. The fixed ration consists of the fixed pay that the candidate is going to earn and the variable includes the benefits and incentives.

b. Comparison with Competition- Another very importnat factor especially in today's scenario is to keep an eye on what the competition is providing, accordingly either the salary is matched if the candidate is desirable by the organisation or if the candidate seems to be an extraordinary talent which suits the company's requirement, they are sometimes even ready to pay more than what the competition is paying. This helps in creating a competitive advantage.

c. Benefits packages- The most attractive thing in a compensation package is the benefits part. The employees are attracted towards taking up the job is majorly because of the benefits they would be provided. The benefits packages include health package, tuition reimbursements for children and other benefits.

Thus, the above three elements play a major role in the designing of a compensation package.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.